Can I retire at age 40 with 985,000?

Use the below retirement simulation to view the chances of a successful retirement.
Confused? Try the simple retirement calculator
About Your Retirement ?
Current Age
Retirement Age
Current Savings $
Annual Deposits $
Annual Withdrawals $
Stock market crash:
Portfolio ?
% in Stocks:
% in Bonds:
% in Cash:
Modify Stock Returns:
0%
Modify Bond Returns:
0%
Modify Cash Returns:
0%
Modify Inflation:
0%
How much money do I need to retire?

This retirement calculator runs simulations based on past data from the S&P 500, 10 Year Treasury Bond, 3 month T-Bill, and US inflation. For each year of each simulation, a random return and inflation amount is chosen.

How to use: Enter your current age and the age when you retire. Then enter your current savings, the amount that you can save annually before you retire, and the amount that you plan to withdraw after retirement. Your annual deposits and withdrawals take inflation into account. For example, if you need $50,000 to live on in retirement using today's dollars, we will automatically take into account the cost of living for your retirement years. The same is true for your annual deposits. Next, decide if you'd like to simulate a stock market crash.

In the portfolio section, choose the makeup of your portfolio with stocks, bonds, and cash. Cash assumes that your money is stored in a savings account. You can then alter the future returns and inflation. For example, if the market has historically returned about 10%, but you think the future will be worse, modify the stock returns by -3%, and the future returns will average out to 7%. Investment fees can also lower stock market returns. Many index funds and ETFs offer extremely low fees and expenses.

Many people receive income in retirement, such as social security, pension plans, part time jobs, annuities, and other benefits. This would allow you to take out smaller distributions every year. Please note that taxes must also be considered, but are not used in this simulation. A 401k, Roth IRA, and Traditional IRA are taxed differently than a standard investment account, as are dividends.

Note: This assumes that the future is at least somewhat like the past. In reality, anything could happen. The Soviet Union collapsed, Japan's Nikkei Index is still well below its 1989 peak. Numerous other markets have changed drastically and never recovered. However, this online tool is helpful in retirement planning and estimating how much you might need for retirement, especially those hoping to retire early. We recommend receiving advice from a financial planner.

Want to retire with $985,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%16%
1 years$81,340$80,616$79,909$79,219$78,545$76,615
2 years$40,268$39,518$38,791$38,086$37,403$35,470
3 years$26,578$25,825$25,100$24,402$23,730$21,855
4 years$19,735$18,984$18,267$17,580$16,924$15,122
5 years$15,630$14,884$14,176$13,503$12,866$11,141
6 years$12,895$12,154$11,456$10,799$10,180$8,534
7 years$10,941$10,207$9,520$8,878$8,279$6,712
8 years$9,477$8,749$8,074$7,448$6,868$5,380
9 years$8,339$7,618$6,954$6,344$5,784$4,373
10 years$7,429$6,715$6,063$5,468$4,928$3,593
11 years$6,684$5,978$5,337$4,759$4,239$2,977
12 years$6,065$5,365$4,737$4,174$3,673$2,483
13 years$5,541$4,849$4,232$3,685$3,203$2,083
14 years$5,092$4,407$3,802$3,271$2,808$1,754
15 years$4,704$4,026$3,433$2,918$2,472$1,483
16 years$4,364$3,694$3,113$2,612$2,185$1,258
17 years$4,065$3,402$2,832$2,347$1,937$1,069
18 years$3,799$3,143$2,586$2,115$1,723$911
19 years$3,561$2,913$2,367$1,911$1,535$777
20 years$3,348$2,707$2,172$1,731$1,371$664
21 years$3,155$2,522$1,998$1,571$1,227$568
22 years$2,980$2,354$1,842$1,428$1,100$487
23 years$2,820$2,202$1,700$1,301$987$417
24 years$2,674$2,063$1,573$1,187$888$358
25 years$2,539$1,936$1,456$1,084$799$307
26 years$2,416$1,819$1,351$991$719$264
27 years$2,301$1,712$1,254$907$649$227
28 years$2,195$1,613$1,166$831$585$195
29 years$2,097$1,522$1,085$762$528$168
30 years$2,005$1,437$1,011$699$477$144
31 years$1,919$1,359$942$642$432$124
32 years$1,839$1,286$879$590$391$107
33 years$1,764$1,218$821$543$353$92
34 years$1,693$1,154$767$499$320$79
35 years$1,627$1,095$717$460$290$68
36 years$1,564$1,039$671$423$263$59
37 years$1,505$987$628$390$238$51
38 years$1,450$938$588$360$216$44
39 years$1,397$892$551$332$196$38
40 years$1,347$848$516$306$177$32
41 years$1,299$808$484$282$161$28
42 years$1,254$769$454$260$146$24
43 years$1,211$733$426$240$133$21
44 years$1,170$698$400$222$120$18
45 years$1,131$666$376$205$109$15
46 years$1,094$635$353$189$99$13
47 years$1,059$606$331$175$90$11
48 years$1,025$579$311$162$82$10
49 years$993$553$293$149$74$9
50 years$962$528$275$138$67$7

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $985,000, adding $6,537 every year, while hoping to spend $49,047 every year in retirement. These numbers increase with inflation.
Reality usually performs much different than the expected returns. This uses historical averages, but anything can happen. In general, riskier investments have greater returns on average, but more volatility in the short term.
Age Total: 100% Stocks Total: 100% Bonds Total: 100% Cash Total: 59/22/19 Blend
39$985,000$985,000$985,000$985,000
40$1,092,213$1,040,008$1,024,740$1,150,850
41$1,151,433$1,038,783$1,006,884$1,190,121
42$1,215,050$1,035,854$986,785$1,226,988
43$1,283,460$1,031,085$964,317$1,266,085
44$1,357,098$1,024,334$939,347$1,307,638
45$1,436,444$1,015,448$911,737$1,351,894
46$1,522,022$1,004,266$881,341$1,399,130
47$1,614,410$990,616$848,007$1,449,651
48$1,714,241$974,318$811,577$1,503,797
49$1,822,212$955,178$771,883$1,561,944
50$1,939,089$932,994$728,753$1,624,509
51$2,065,715$907,549$682,005$1,691,955
52$2,203,015$878,616$631,450$1,764,794
53$2,352,008$845,953$576,888$1,843,593
54$2,513,813$809,305$518,114$1,928,981
55$2,689,662$768,401$454,911$2,021,654
56$2,880,909$722,955$387,052$2,122,382
57$3,089,047$672,664$314,303$2,232,020
58$3,315,714$617,209$236,417$2,351,511
59$3,562,716$556,252$153,137$2,481,902
60$3,832,040$489,435$64,193$2,624,347
61$4,125,872$416,381$0$2,780,128
62$4,446,617$336,690$0$2,956,888
63$4,796,926$249,942$0$3,164,257
64$5,179,714$155,691$0$3,390,999
65$5,598,192$53,467$0$3,639,095
66$6,055,894$0$0$3,910,725
67$6,556,712$0$0$4,222,155
68$7,104,932$0$0$4,577,309
69$7,705,273$0$0$4,966,310
70$8,362,931$0$0$5,392,535
71$9,083,629$0$0$5,859,706
72$9,873,670$0$0$6,371,916
73$10,739,997$0$0$6,933,680
74$11,690,253$0$0$7,549,967
75$12,732,861$0$0$8,226,250
76$13,877,097$0$0$8,968,558
77$15,133,177$0$0$9,783,534
78$16,512,357$0$0$10,678,493
79$18,027,035$0$0$11,661,494
80$19,690,868$0$0$12,741,417
81$21,518,902$0$0$13,928,040
82$23,527,711$0$0$15,232,139
83$25,735,557$0$0$16,665,585
84$28,162,555$0$0$18,241,456
85$30,830,869$0$0$19,974,158
86$33,764,917$0$0$21,879,566
87$36,991,601$0$0$23,975,170
88$40,540,560$0$0$26,280,237
89$44,444,451$0$0$28,815,999
90$48,739,255$0$0$31,605,846
91$53,464,615$0$0$34,675,552
92$58,664,211$0$0$38,053,515
93$64,386,172$0$0$41,771,022
94$70,683,526$0$0$45,862,552
95$77,614,705$0$0$50,366,090
96$85,244,090$0$0$55,323,494
97$93,642,621$0$0$60,780,885
98$102,888,467$0$0$66,789,083
99$113,067,760$0$0$73,404,087
100$124,275,408$0$0$80,687,601